Financial crisis
Term Auction Facility has done little to help
The Term Auction Facility operation, introduced in December to temper money-market tensions, has failed to narrow interbank spreads, a research paper co-authored by John Taylor, the creator of the influential Taylor rule on monetary policy, finds.
G7 backs FSF recommendations
Central bank governors and finance ministers from seven of the world's leading economies have welcomed the Financial Stability Forum's (FSF) regulatory response to the credit crunch and are set to implement several of its recommendations by the end of…
Crisis worst shock since Great Depression: IMF
The International Monetary Fund (IMF) warned that the US subprime fallout has precipitated the largest financial crisis since the Great Depression and that there is a 25% chance that it will cause a full-blown global recession.
Bond spreads determined by turmoil
At the times of crisis global financial market conditions are the fundamental drivers of changes in bond spreads, research published by the International Monetary Fund finds.
Greenspan hits back
Alan Greenspan, a former chairman of the Federal Reserve, has said that the blame for the subprime crisis lies with the investment community rather than himself, as has often been argued.
FSF to suggest radical solutions to turmoil
The Financial Stability Forum (FSF) is set to propose a series of unorthodox measures for fighting the credit crunch, say media reports.
Financial markets in Japan
This new report from the Bank of Japan looks at how financial markets in the country coped with the market turmoil triggered by the subprime woes in the second half of 2007.
Turmoil set to impact Swiss exporters: SNB's Roth
The financial market turbulence is unlikely to leave Switzerland unscathed, said Jean-Pierre Roth, the chairman of the governing board of the Swiss National Bank.
Fed's Hoenig notes monetary policy's limits
Thomas Hoenig, the president of the Kansas City Federal Reserve, said he has been struck by the heavy burden placed on monetary policy to cope with the current crisis and its potential spillover effects.
Bank Indonesia investigation officer arrested
Indonesian anti-corruption officials have arrested a prosecutor investigating allegations of misuse of central bank funds on suspicion of bribery.
Credit crunch – phase two
The credit crisis that started in August last year has moved into a destabilising second phase, with equity markets and the real economy looking increasingly shaky. This section analyses central banks’ response to the long-running crisis
Interview: Charles Goodhart
Claire Jones spoke with the former Bank of England policymaker about the co-ordinated liquidity interventions and the move towards aggressive policy easing by the Fed
News analysis: Forced into action
Claire Jones, the editor of Central Bank News, analyses how uncertainty threatened to cripple the interbank market and called for a unique response from the central banks
BoE's Lomax notes dramatic shift in outlook
The persisting financial turmoil and the build up in global inflationary pressures have led to a dramatic change in the outlook for 2008 and beyond, Rachel Lomax, a deputy governor at the Bank of England, said.
Philippines looks to end special vehicles
The central bank in the Philippines is seeking to draw a line under special purpose investment vehicles that are a legacy of the Asian financial crisis that erupted more than a decade ago.
World Bank poll less pessimistic than IMF outlook
Financial turmoil is likely to have a relatively small impact on the global outlook, the World Bank's optimistic Global Economic Prospects finds.
IMF to review central bank response to turmoil
The International Monetary Fund (IMF) is set to investigate the reaction of leading central banks to the interbank turmoil that hit markets in the wake of the subprime crisis.
Fed's Poole says risk of recession unclear
William Poole, the president of the St Louis Federal Reserve, said on Wednesday that it was still too early to tell whether the housing sector's problems would push the US economy into recession.
Fed's Rosengren calls for banks to declare losses
Banks must fully disclose their losses to limit the damage of the subprime fallout, says Eric Rosengren, the president of the Boston Fed.
Central banks partly to blame for crunch
The creation of excessive global liquidity by key central banks was one of a number of phenomena that led to the current financial crisis, says Willem Buiter, a former member of the Bank of England's monetary policy committee, now an economics professor…
Northern Rock shows fallibility of communication
The run on Northern Rock, a British mortgage lender, illustrates the potential downside of central bank communication around stability issues, says Gary Stern, the president of the Minneapolis Federal Reserve.
Fed minutes reveal clear shift in outlook
The minutes of the December meeting of the Federal Open Market Committee (FOMC), published on Wednesday, reveal a more dovish Federal Reserve than was suggested at the time.
ECB could hike rates, says Orphanides
The European Central Bank's rate-setting governing council will not rule out raising interest rates, Athanasios Orphanides, a member of the council and governor of the Central Bank of Cyprus, said on Thursday.